FUEL FOR PRIVATE PLEASURE CRAFT - CONSULTATION
At the end of July, the Government issued a consultation document on its proposals to legislate for the ending of the EU derogation that allows private pleasure craft to operate on rebated fuel, ie gas oil (red diesel).

The consultation includes an option for private pleasure craft to continue to run on gas oil, but taxed at full duty rate. This would save the significant cost of providing additional infrastructure to cater for road diesel as an additional product to gas oil (commercial craft will still be able to run on rebated gas oil). The FPS, together with the British Marine Federation, the Royal Yachting Association and the Inland Waterways Association, made extensive representations to Government to consider this option as the most pragmatic approach to an unwelcome situation forced upon the UK by the EU.

The consultation can be found on the HMRC website at: www.hmrc.gov.uk/consultations. Comments must be returned by 31 October 2007. The new legislation will come into force on 1 November 2008.